Thursday, May 3, 2007

Home Sweet Business

A home business opportunity can be the greatest thing for you since sliced break. It can be a way to make more money than you ever did slaving for someone else. With a home business opportunity you can give yourself more time with your family and you can work the hours that are best for your body and your lifestyle. You may find that a home business opportunity is much less expensive to start than some brick and mortar retail or service storefront. No matter what home business opportunity you decide to start, no matter what industry it is own, what service or product you are going to sell, and no matter whether your clientele is as small as your neighborhood or as large as the world, you are going to have to have some upfront money.
A home business opportunity generally starts - and sometimes stays - a sole proprietorship. Almost nearly as common is the concept of a home business opportunity partnership, often with two personal partners or spouses. It isn't until much later in the life of the business that a home business opportunity owner would consider creating a corporation.

Due to this proprietorship aspect the owner is more than likely digging into her or his own savings and paycheck to fund the startup. What this means, then, is that you have to do a thorough, methodic, detailed and well-documented study of our finances, your need for capital and the methods you might use to raise company funding.

First, you should divide your own finances into categories. You'll have own spreadsheet column for assets, one for liabilities, and one each for the various types of insurance - health, life, personal risk and short term and long term disability. Because it's a business opportunity that you’re going to build from home and work at from home you'll also need property and casualty insurance. This would include homeowners or renters coverage, personal injury liability protection, and auto insurance. The other important big ticket needs that you shouldn't neglect to figure in are your children’s upcoming higher education costs, and perhaps even business training for yourself or potential staff. The other important financial need is for a retirement savings plan.

Once you've applied a reasonable money figure to each category you'll now need to total your assets and your liabilities and separate the second from the first. You now know your estimated net worth, which tells you how able you are to finance your home business opportunity. You also now have a financial document you can present to your bank and any other potential lending firm. This is assuming, of course, that your assets exceed your liabilities to enough of an extent that a financial firm would consider you low risk for a home business opportunity loan.

No matter how little money you have in your home business opportunity coffers the first few months you must remember to pay yourself first. It’s the way you survive to grow your home business opportunity into a fruitful and successful business venture.


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